Australia has just launched a new mutual fund that allows investors to own crypto without buying it themselves.
One of the highlights is that through Cosmos Asset Management, Australia has successfully issued the first Ethereum Mutual Fund that follows the Bitcoin Mutual Fund mechanism previously issued by Canada.
Currently, several crypto mutual funds are starting to be traded in Australia, a new step for crypto adoption in the country.
Australia Issues Crypto
Mutual Fund ETF called Cosmos Purpose Ethereum Access ETF or CPET had been legally published in Australia.
Since Tuesday, May 31, 2022, this mutual fund has been officially traded, with 2,073 shares circulating on the Australian financial market.
The mutual fund allows investors to buy Ethereum through an investment manager without having to manage it themselves.
This mutual fund issuance is the world’s first Ethereum Mutual Fund that directly follows Ethereum’s movement in the spot market without the help of a derivative asset base.
It is reported that the mechanism for issuing this mutual fund follows the mechanism carried out by Canada regarding Bitcoin Mutual Funds.
Previously, Canada made a breakthrough by issuing the world’s first Bitcoin Spot Mutual Fund. Currently, the only Australian who managed to compete was seen.
The existence of these mutual funds also makes Australia superior to America, as America is still having difficulty issuing crypto asset-based mutual funds in the spot market.
The issuance of this Ethereum Mutual Fund occurred after several Bitcoin Mutual Funds appeared in Australia, one of which was ETF mutual funds for crypto assets on the spot market, which were traded in mid-May 2022.
Previously, Bitcoin and Ethereum mutual funds were not entirely based on spot assets in Australia.
21Shares issued the mutual fund with a transaction volume of $656,000 and $415,000 at the time of its issuance on May 12, 2022.
Unfortunately, all existing mutual funds have not received a positive response.
This negative response is due to the harmful condition of the crypto market.
Investors’ Responses Not Positive
Since the launch of all the previously mentioned mutual funds, local investors have not responded positively.
This not-yet-positive response can be seen from the volume of transactions, especially buying volume, which is still relatively low.
ETF Mutual Fund analyst from Bloomberg named Eric Balchunas analyzes this low transaction volume phenomenon. He compared this low transaction volume with Bitcoin Mutual Fund transactions in Canada.
There is a comparison he gave where the ETF issued in Australia plus one more ETF related to Bitcoin issued by Cosmos Asset Management, compared to the launch of the Canadian Bitcoin Mutual Fund when it was published, the volume was about 250 times lower.
In addition, he also stated that market conditions influenced the difference in transaction volume.
When Canadian Bitcoin Mutual Funds are issued and traded, the crypto market moves positively, while the market is currently negative.
Balchunas also provided analysis from other Twitter investors, which suggested other factors related to this low volume.
These factors are the high transaction costs in Australia and the minimal availability of these ETFs.
This limited availability occurs because very few platforms or brokers are willing to accept these ETFs for trading.
Most likely, this condition occurs because of regulations related to the obligation for brokers to provide 42% guarantee funds from each transaction, which is quite expensive compared to other countries.
It becomes natural why the transaction volume is relatively low compared to Canada.
So, for now, no positive sentiment will push the price of most cryptocurrencies up, which is also influenced by macroeconomic conditions.
More News About Crypto : NEWS
Follow our Twitter : https://twitter.com/DinoDapps
